A Bitcoin ATM (Automated Teller Machine) or BTM (Bitcoin Teller Machine) is a popular means of bypassing the traditional banking system of buying or cashing out Bitcoin (BTC). They have grown in popularity over the years alongside the rising value of cryptocurrencies and the increased level of trust in them.
Other ATMs that allow users to buy and/or sell other cryptocurrencies such as Ether (ETH), Bitcoin Cash (BCH), Dash (DASH), and Litecoin (LTC), among others.
If you haven’t used one yet or would like to learn more about it, keep reading. In this article, we’ll be discussing a few interesting points regarding Bitcoin ATMs. We’ll also provide you with helpful information, such as the typical requirements and steps you need to keep in mind when buying or selling Bitcoin.
We’ll also answer questions such as how do I deposit money into a Bitcoin ATM? How much does it cost to use a Bitcoin ATM?
What is a Bitcoin ATM, or BTM?
An ATM or BTM is similar to a regular automated teller machine in that it is a physical kiosk. What differentiates it from typical ATMs, of course, is that it allows users to buy Bitcoin in exchange for cash or debit. Some BTMs also allow users to sell Bitcoin for cash.
BTMs look like typical ATMs. However, they connect to a Bitcoin wallet instead of a bank account. In place of a bank card, the Bitcoin wallet serves as a repository from which coins are sent or debited. Some Bitcoin ATMs look very similar to traditional ATMs because they are indeed traditional ATMs with software customized for Bitcoin.
A brief history of Bitcoin ATMs
The first ATM for cryptocurrency first opened on October 29, 2013. It was a Robocoin machine located in Canada’s Waves Coffee Shop in Vancouver. It only operated until 2015 due to operating errors from Bitstamp, but it is widely recognized as the world’s pioneering Bitcoin ATM. A Bitcoin ATM was then opened in Europe shortly thereafter. It was located in Bratislava, Slovakia, and was installed on December 8, 2013.
Meanwhile, the first Bitcoin ATM in the United States was installed on February 18, 2014, in Albuquerque, New Mexico. It was, however, short-lived and was pulled out after only a month of operating.
Much like the cryptocurrency itself, Bitcoin ATMs have since faced many challenges concerning regulations. Finally, a consensus was reached upon agreeing that Bitcoin ATMs also had to adhere to the same laws and regulations as traditional ATMs.
This includes limits on the number of deposits and withdrawals that could be made by a person per transaction, per day. For instance, in the United States, all Bitcoin ATM operators must register with the Financial Crimes Enforcement Network (FinCEN) and follow the Bank Secrecy Act’s (BSA) Anti-Money Laundering (AML) regulations.
The Bitcoin ATM may need your cell phone number to send you a text verification code depending on the transaction quantity. Before completing a transaction, you may be required to scan a government-issued piece of identification, such as a driver’s license.
Also, much to the dismay of many crypto enthusiasts, a lot of Bitcoin ATMs no longer offer the anonymity they once did. This is because of regulations in place that require users to verify their identity before transacting, especially for large …….